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I am assuming you mean a drive axle on a rear wheel drive vehicle? Rebuilding one consists of removal, disassembly, cleaning, inspecting and measuring parts for wear, replacing broken or worn parts, reassembly and geometry setup, gear-pattern checking and re-installation. The main hurdle for a do-it-yourselfer is the specialized tooling and know-how needed to properly set the gear geometry. Shims must be added or subtracted under the pinion gear to set the pinion depth. Shims must be added or subtracted to to the carrier to arrive at the proper carrier preload, then the resulting shim pack has to be distributed on either side to move the carrier left or right to set the ring gear backlash. Shims may need to be added to set the spider gear backlash. If the differential is a limited-slip or positraction type, there will be a clutch pack that needs to be rebuilt too. Many of the expensive measuring jigs can be eliminated by pattern checking the gears. This involves assembling the parts, painting the gear teeth with prussian blue or white lead, and turning the yoke by hand. Then you carefully inspect the pattern in the dye coating the gears. An experienced tech can use the pattern to tell where to adjust the various shim packs. You disassemble everything, add/remove or adjust the various shim packs, reassemble, and do another pattern. You do this over and over until the pattern is perfect. If you get the mesh pattern wrong, the $300 gearset you just purchased will growl, scream and make other funny noises as you drive down the road, and you will be fortunate to get 100 miles before the gears destroy themselves. If you want to learn and do many differentials, the time and money will be well spent. It can be a lucrative business. But if you are trying to do just one, to save a little money, it is my opinion you wll spend much more than it would cost to have a shop do it for you. if you have basic hand tools but no precision measuring tools, plan on spending 300-500 dollars for various measuring tools and jigs, another 300-500 for ring and pinion gearset, carrier bearings, wheel bearings, gaskets, seals, oil, etc., and a little more if you have a limited-slip differential. I don't want to scare you off, but neither would I like to see anyone spend a big chunk of cash only to end up with an expensive boat anchor! If you decide to try, take your time, get some experienced help, and do it right.

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Q: How can you rebuild a rear axle?
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